Laguna plant cuts costs with hydro

Asaba Manufacturing Philippines Inc., a subsidiary of Singapore-based Engtek Group, expects to improve cost efficiency and reduce carbon emissions after fully transitioning to hydroelectric power under a supply deal with Lopez-family-led First Gen Corp. (FGEN).

“By replacing coal-fired electricity with renewable hydro power, we expect a meaningful reduction in our carbon emissions. In 2024 alone, Asaba Manufacturing recorded 3.64 CO₂ emissions. This partnership directly supports our long-term climate targets,” Engtek Philippines president Motohiro said over the weekend.

The Asaba facility in Calamba, Laguna, now runs fully on hydroelectric power from FGEN’s Pantabangan and Casecnan plants in Nueva Ecija, supporting Engtek’s goal to cut greenhouse gas emissions by 45 percent by 2030.

Free choice

The transition follows a power supply deal signed in November 2024 under the Retail Competition and Open Access provision, which allows qualified consumers to choose their electricity provider.

Engtek first partnered with FGEN in 2022 for its other Philippine facility, which now uses geothermal and on-site solar power as part of the group’s broader push for sustainable energy across its operations.

“We are pleased to support Engtek in its sustainability journey. First Gen’s goal is to enable our partners to decarbonize without sacrificing operational reliability or efficiency. We thank Engtek for its continued trust,” FGEN chief engagement officer Carlo Vega said. 

Asaba, established in 1995, produces aluminum and zinc die-cast components for the automotive sector. It became part of Engtek’s regional precision engineering network in 2024, which spans Malaysia, the Philippines and Singapore.

First Gen supplies nearly 300 megawatts (MW) of hydro power from three plants and operates 25 other renewable facilities using geothermal, solar and wind, with a combined capacity of 1,352 MW. 

It also runs 2,017 MW of natural gas to support grid stability, but remains committed to helping industries shift away from coal and toward cleaner energy.